Question

the price of sugar increases by 20%,by what percent its consumption be changed so that expenditure decreases by 20 percent?

Answer 1

let price of sugar be x
after increasing price new price=1.2x
now expenditure decrease by 20% means expenditure be 0.8y
consumption ratio=expenditure ratio/expenditure ratio
=1.2*0.8
=.96
so consumption decrease by 4%